FTC and states sue Amazon over alleged secret advertising surcharge

The Federal Trade Commission and attorneys general from 22 states have filed a lawsuit against Amazon, accusing the e‑commerce giant of covertly imposing higher fees on businesses that use its advertising services. The complaint alleges that Amazon’s advertising platform required sellers to pay undisclosed surcharges, effectively charging them more than the rates advertised and violating consumer‑protection statutes. Plaintiffs contend that the hidden costs distorted market competition and harmed merchants who rely on Amazon’s marketplace to reach customers.

Amazon has denied the allegations, stating that its advertising pricing is transparent and consistent with industry standards. The companies named in the suit include a range of small and medium‑sized sellers who claim they were misled about the true cost of promoting products on the platform. The case, filed in federal court, seeks injunctive relief, restitution for affected businesses, and civil penalties. The outcome could have significant implications for Amazon’s advertising revenue model and its broader relationship with third‑party merchants.